Iran will enter output freeze talks after recovery

13 March 2016

Oil minister says Tehran will cooperate after production hits 4 million barrels a day

Iranian Oil Minister Bijan Zanganeh said Tehran would join talks with other crude exporters to freeze production after its own output reached 4 million barrels a day (b/d), according to domestic media reports.

Iran is increasing its oil production following the lifting of nuclear-related sanctions in January, aiming to produce additional 1 million b/d by the end of 2016, which would bring output close to 4 million b/d.

Meanwhile, leading oil producers including Russia and Saudi Arabia have been in talks to freeze production in an attempt to boost prices by reducing global oversupply.

“They should leave us alone as long as Iran’s crude oil has not reached 4 million [b/d]. We will accompany them afterwards,” Zanganeh was quoted as saying by IRNA news agency.

Iran produced an average of 2.93 million b/d in January 2016, according to a report by Opec citing secondary sources.

Zanganeh told IRNA that Iran sees $70 a barrel as a suitable oil price but would be satisfied with less.

The Brent price rose above $40 a barrel last week for the first time since December, recovering from mid-January lows of under $30.

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